FAQs

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Tell me more about STP functionality.

For an STP you can invest a lump sum amount in one scheme and regularly transfer a pre-defined amount into another scheme. Commonly, investors park a lump sum amount in a debt fund, from where a regular amount is transferred at periodic intervals into specific equity-oriented funds. It is similar to the drip investing concept of an SIP, the only difference being that money flows from one fund to another in case of an STP instead of being transferred from your bank account. This eliminates the risks associated with timing the market in case of lump sum investments and in turn offers the benefit of rupee cost averaging. You may choose a daily, weekly, monthly or a quarterly transfer plan, as per your needs.

For an STP, you have to choose a fund from which the transfer is taking place (Transfer of scheme or fund) and a fund to which the transfer is taking place (Transferee Scheme or Fund). Transfers can be made daily, weekly, monthly or quarterly depending upon the STP chosen by you and the options available.

The STP takes place in the form of units of the fund. This switch to the new scheme is carried out at the prevailing net asset value (NAV). Depending upon the NAV of the transferor fund, the redeemed units are converted in to redemption amount which is used to purchase the units of the transferee fund.

Say if a person wants to invest in a fund ''''B'''' through STP, he will have to first select a fund ''''A'''' which allows STP. After selecting the fund ''''A'''', he will select fund ''''B'''' where the amount will be transferred. But instead of reallocating the entire amount, in STP you can select and set your amount and time period according to your risk appetite and the money will be regularly transferred from fund ''''A'''' to fund ''''B''''.

The STP helps against any foreseen or sudden downfalls of the market.

How do I apply for a Systematic Transfer Plan (STP) online?

Currently only an existing investor with Quantum Mutual Fund who has a username and password for the Invest Online section can invest in STP through our online STP option.

Follow a simple registration process as mentioned below to start an Online STP.

1

Visit www.QuantumAMC.com.

2

Click on Invest Online section and log in using your username and password.

3

Under ‘Transactions’ click on ''STP Registration'', enter your PIN and follow the instructions which will guide you through the entire process.

4

Fill up the Online STP registration form and confirm your details.

Which schemes of Quantum Mutual Fund offer Online STP facility?

You can start STP, through Direct & Regular Plans for the following schemes:

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Quantum Long Term Equity Fund

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Quantum Liquid Fund

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Quantum Tax Saving Fund

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Quantum Equity Fund of Funds

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Quantum Gold Savings Fund

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Quantum Multi Asset Fund

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Quantum Dynamic Bond Fund

How will I know that my Online STP registration has been carried out?

You will receive a confirmation email with the details of your Online STP after successfully completing the registration process on our website.

You can also check the status of your registration under the section ‘STP/SWP Cancellation’.

What are the minimum Application Amount, minimum no. of installments required and frequency of dates available under each scheme?

What is Systematic Transfer Plan (STP)?

STP refers to Systematic Transfer Plan where in an investor invests a lump sum amount in one scheme and regularly transfers (i.e. switches) a pre-defined amount into another scheme. According to the frequency of STP selected, on a specified date an amount chosen by the investor is transferred from the existing scheme to another of the investor’s choice.

How will the Online STP function?

After registering the STP, on the date and the frequency chosen by you; the STP installment amount will be switched out from the source scheme and will be invested into the target scheme in which you wish to invest.

Can I cancel or modify my Online STP? If so, how?

Yes, you can cancel your online STP. If you wish to cancel the existing STP registered with us, you can do so by following the below mentioned procedure:

1

Login with User Id and Password in ‘Invest Online’ section.

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Visit the section Transaction>STP/SWP Cancellation.

3

Enter your online transaction PIN

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Click on the option of ‘Cancel’ to the right side of the individual STP registered.

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Click on the option ‘Confirm’ on the cancellation confirmation page.

Kindly note that, you need to submit the online STP cancellation request 10 business days prior to the next STP date opted by you online.You cannot modify the STP after registering on our website since STP is a commercial transaction. Hence, you will need to first cancel your existing STP with the cancellation procedure given above. Subsequently, you can register for fresh STP online.

Are there any charges for online STP?

The Online STP facility is available at NO CHARGE. However, in case you are opting to do STP from Quantum Long Term Equity Fund, Quantum Equity Fund of Funds, Quantum Gold Savings Fund and Quantum Multi Asset Fund then kindly make a note of the applicable exit loads for the scheme.

Do I need to have a minimum balance in the scheme to start Online STP?

Yes, to start Online STP you must have a minimum balance of Rs.5,000/- in the scheme you wish to invest from.

When does the online STP get activated?

Online STP instructions will take 10 business days for registration with the registrar. The first STP transaction will be carried out only after the registration.

How will the exit load be charged in case of STP purchase?

The applicable exit load will be charged at the time of STP according to the scheme features.

Why should I invest through STP?

When you feel that your portfolio needs rebalancing, STP comes in handy and saves you from lots of operational hassles that would otherwise go in transferring funds into equity schemes. When market conditions are in favor of equity growth in near future, it’s good to skew your portfolio towards equity for better returns with the help of STP.

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Works as SIP: You can invest in a Debt funds and from there you can start a STP to an Equity Fund, so it works like a systematic Investment Plan (SIP).

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Works as SWP: STP can also work like SWP, because with some funds you can do transfer from Equity funds to Debt Funds, so when markets look risky you can start a STP from Equity to Debt funds, which will act like SWP.

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Liquidity: Generally one does STP from Debt to Equity funds, so your money is invested in Debt fund. This means you can sell it anytime if you want. Hence it works like an ‘Emergency Fund’ too. In case you need money urgently, it can act like a liquid asset.

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Growth in Money: Not to forget that your money is invested in Debt funds, so your money is also growing at debt returns.

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